Guanxi HRM Practice and Employees’ Occupational Well-Being in China: A Multi-Level Psychological Process

Chinese employees may experience and respond to guanxi human resource management (HRM) practice (e.g., recruiting, selecting, inducting and appraising employees based on personal relationships). Little has been done to examine the linkage between guanxi HRM practice and employees’ occupational well-being. This study investigates the psychological process of how guanxi HRM practice affects employees’ occupational well-being. The theoretical model of this study proposes that employee psychological safety mediates the relationship between guanxi HRM practice and occupational well-being, while collectivistic team culture moderates the relationship between guanxi HRM practice and psychological safety. Multi-level data from 297 employees nested within 42 teams support all hypotheses. This study reveals the cross-level effects of guanxi HRM practice and providing practical suggestions for future research on psychologically safe and healthy work environments.